ProPetro Holding Corp (PUMP)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	120,810	157,004	123,475	30,660	8,992	-33,843	-53,083	-24,872	-67,822	-101,444	-132,005	-151,545	-132,115	-45,657	39,593	119,613	220,645	259,468	272,339	277,282
Long-term debt	US$ in thousands	45,000	45,000	60,000	30,000	30,000	—	—	—	0	—	—	—	0	0	0	110,000	130,000	130,000	150,000	160,000
Total stockholders’ equity	US$ in thousands	998,392	1,027,330	1,008,360	982,923	954,033	830,538	817,036	847,212	826,302	842,815	844,743	847,269	870,771	911,767	938,429	961,516	969,305	944,100	909,037	869,541
Return on total capital		11.58%	14.64%	11.56%	3.03%	0.91%	-4.07%	-6.50%	-2.94%	-8.21%	-12.04%	-15.63%	-17.89%	-15.17%	-5.01%	4.22%	11.16%	20.07%	24.16%	25.72%	26.93%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $120,810K ÷ ($45,000K + $998,392K)
= 11.58%

ProPetro Holding Corp's return on total capital has exhibited fluctuations over the past few years. Generally, the company's return on total capital has been positive, indicating that it has been able to generate profits from the capital invested in its operations.

The return on total capital was relatively low in the first quarter of 2020 at 3.03%, possibly due to economic challenges or specific company circumstances during that period. Subsequently, there was a significant decline in the return on total capital in the second quarter of 2020 and remained negative until the first quarter of 2021. This period of negative returns may suggest challenges or inefficiencies in capital allocation and operational performance.

From the second quarter of 2021 onwards, there was a notable improvement in the return on total capital, with positive figures exceeding 10% in some quarters. This improvement may indicate enhanced operational efficiency, better utilization of capital, or strategic decisions that positively impacted the company's financial performance.

Overall, ProPetro Holding Corp's return on total capital shows variability, with periods of both positive and negative returns. It would be essential for stakeholders to monitor the trend of this ratio over time to assess the company's ability to generate returns from its total capital effectively.